An Essay on Economic Theory

2.2. Market Prices

An Essay on Economic Theory by Richard Cantillon
Richard Cantillon

Market prices are determined by the bargaining between suppliers and demanders. Price determination by supply and demand is illustrated with a thought experiment that uses a fixed quantity of a perishable product (i.e., green peas) and known maximum valuations of consumers.

From Part 2: Money and Interest. Narrated by Millian Quinteros.